Innovation Process

August 16, 2015

Why do some companies make so much profit and command price premiums while some continually struggle to make minimum margin and gain market share despite spending good money on advertising, buying channel presence with some even having a better designed product?

The secret is very simple. Though these different high performance companies operate in very different industries and face different challenges, the major reason for their success comes down to one thing. They understand it is all about the customer experience. And they don’t even have to do it for everyone. At least not initially.

They are putting their customers at the center of their universe; they also understand that not every company can do that (including their competitors who are many times bigger and with big marketing budget) because it will be difficult or too expensive for them to make that work for everyone.

The secret is that you should start with ‘not everyone’ and identify those ‘someone who cares’. Those someones who appreciate the extra things that you do and will ultimate tell everyone about it and essentially those become the most tangible evidence of your brand promise. The declining effectiveness of advertising is well evidenced and many marketers are still doing that despite their value propositions which are unclear, and customer experience is underwhelming. And instead of spending time and resources on the latter, they take the easy path and buy more display advertising, it is not going to work.

Smart companies understand that success depends most fundamentally on a few core customers and if you can tailor your customer value propositions to them and then design the experiences just for them, you’re on the right track and can achieve a new level of performance and differentiation. These customer experiences are not about a $50 rebate, or a free something or many thank you emails. These are things that consumers take for granted and believe you’re doing it to get their business as the cost of doing business.

Customer experience needs to get emotional. This is how our brains are wired and this is when design thinking comes into play. You need to map the customer journeys and engineer happy accidents. Not a business process exercise at all and don’t mix them up. Walk their shoes in their everyday life and constantly invent new ways to apply the best value propositions on minimal scale. Remember customer experience is not about being well said, it is about being well done and it is not a published rule book. It is embedded in your culture and how your brand dictates your behavior.

July 03, 2015

During a bank robbery in China, the bank robbers dressed in fake Hugo Boss fashion, carrying AK47s shouted to everyone as they rushed into a bank: "Everyone don't move. This is a robbery. The money belongs to the People. Your life belongs to you. Your designer handbag we will not take. We don’t take your IDs and we are not identity thefts, that’s not ethical at all. We will take only the money from the bank."

This is called “Staying Focus!”

The older robbers shouted “Don’t do any tricks. I know them because I used to work in a bank too. Just do as you are told.” One guys asked. “Which bank did you work for?”. He replied “The Sperm Bank. But we never had a robbery while I worked there.”

This is called “Domain Knowledge!”

Everyone in the bank got down on the floor. One woman was looking at her smartphone and noticed one of the robbers showed up on her Tinder app and shouted hey you look good and is that a real picture! The younger robber said, “We are only here to do work, not looking for a date. Perhaps after. Now I am busy?" The big brother yelled at him ”You should have turned that off!” And then everyone in the bank started looking at their smartphones.

This is called "Avoiding Distraction!”

Then one of the bank’s staff started asking the robbers. “What are you going to do with that much money? You guys should know investment is risky if you don’t know anything about it. You don’t want to risks your hard earned cash. We have different investment vehicles and the money can be placed in Switzerland and safe even if you got caught.”

This is called “Risks Management!”

When the bank robbers returned home, the younger robber told the older robber: "Big brother, let's count how much money we got" The older robber said: "Don’t bother, the news will tell us. Too much work and let them do the job. I'd rather spend the time look at stocks we want to buy with the money. The market is a good buy now.” The young robber said “Ah yes! Let them do the job!”

This is called “Opportunity Cost!”

Right after the robbers were gone, the bank manager held a meeting. But the supervisor said to him: "Shall we add the $10m that we have lend to our friends and families so we can write them off! Perfect timing.”

This is called “Opportunity Mapping!”

The next day, the TV news reported that $100 million was taken from the bank. The robbers counted and counted and counted, but they could only count $10 million. The robbers were upset: "We risked our lives and only took $10 million. The bank manager took $90 million without doing anything. That’s not fair. I guess that’s what happened when people understand business”

This was adapted from a joke I was told when traveling in China and dramatized.

May 29, 2015

All companies go through some kind of crisis at some point but what does it take to get out of it? There aren’t many successful turnarounds in large companies and the bigger the company and the longer the history, the more difficult it is for any turnaround and its success rate is lower.

Harley Davidson in mid-life crisis when Richard Teerlink joined the company in 1981 as CFO, the company had US market share of 15% and reported a loss of $15m. The company was killed by its strong Japanese competitor led by Honda. In 1989, he took over as CEO and returned the company's focus to increasing quality, improving service and producing world-class heavyweight motorcycles. In the end it is the product that turned the company around. Harley Davidson recovered its U.S. market share to 50% and posted annual sales of more than $1.7 billion. Teerlink left his post as CEO in 1997, and served on Harley Davidson’s board of directors for another 5 years. He did a great job as a turnaround manager.

The story of IBM’s brush with bankruptcy is another greatest business comeback of all time. IBM’s problem was that it was quickly becoming irrelevant and experiencing zero growth. The company had also made some bets that didn’t work out. Lou Gerstner took control in 1993 and created more focus in the company. He did a great job as a transformation manager.

One lessons here is not mix up a turnaround with a transformation. It’s very important to distinguish between a transformation and a turnaround. A turnaround involves a company that has fallen off the rails and has executed poorly and still competing in the same product/market space. It takes a tough driven executive to make it work.

A transformation is truly a lot more difficult and takes a lot more deep wisdom with execution playing a secondary role. The company must fundamentally change its mental and operating model. It is a reinvention and companies who are used to doing things their way find it difficult to start doing things differently. This is not a 3 or 6-month initiative. It’s very, very strategic, foresight driven and problematic.

For any successful transformation, it takes leadership rather than management. “I hire people brighter than me and I get out of their way” as Lee Iacocca puts it. I am not sure who said something like “Inventories and supply chain parts can be managed but people must be led.”

I’ve both architected and supported quite a few successful turnaround behind the scenes as strategic consultant in my career, my simple advice for transformation leaders is people don’t just care what you know unless they know that you care. You need to earn that by caring and then knowing. It takes inspirational motivation to motivate managers to commit to the vision of the organization no matter how hard it is to achieve the vision. It also takes intellectual stimulation to foster innovation and creativity to challene the groupthink or yesthink. It is as much an intellectual undertaking as much as an executional exercise.

The world is not ending. Winning for tomorrow requires a vision. Brilliant strategies don’t show up spontaneously particularly for complex and fast moving industries. It comes from strategic dialogues, strategic foresights, options, even failures and mistakes. The ability to see the problem as a whole and then integrate a variety of perspectives and not simple quick fix. There is no simple quick fix.

November 15, 2014

The world is suddenly obsessed with smart technologies and this time around it seems unstoppable. Our everyday electrical and mechanical industrial object will now be occupied and ran by software and connected to the cloud. It also means each object (as small as some smoke detectors and as large as automobiles) will now be equipped with tons of sensors and can be able to adapt to different environment and individual needs.

It is essential that the next wave of industrial revolution will make us more efficient and empowered (and more human I hope), and data will be at the heart of this revolution. That's another big conversation. All the Nest, GoPro and Beats received multi-billion-dollar valuations through private investments or acquisitions and everyone is wondering why these hardware companies suddenly in such high demand. Because hardware and software are going through different commodity lifecycles and now software is becoming a commodity. They used to be difficult and expensive to develop and even to deploy, that that is changing. It is hard for software company to get into hardware much as hardware companies struggle to get into software. Hardware cannot be done by a few geeks in the basement, and involves massive R&D and specialists including megatronics engineers, electrical engineers, industrial designers, wireless engineers and usually takes a longer time to develop.

Software you can fix it with a download, and hardware you can’t. They are massive supply chain challenges when it comes to logistics and component supplies. The value of firms who can marry software and hardware will have a competitive advantage over their competitors. Essentially everything we use today will be fitted with some sensors, processors perhaps, and may be a screen and will recarnate and become of Internet of Things. For the last three decades, software engineering has advanced to a state that sophisticated codes can be embedded into machines. And the availability of cheap sensors and super powerful processors is powering this cycle of data revolution. All of a sudden, software, hardware and communications infrastructure are advancing us into a new era. Old world manufacturing + low cost computer processing + ubligious computing + cloud = smart new world and many cool products.

It sounds like the Apple story all over again, does it? The hardware and software integration capability of Apple, the ecosystem, the brand and user experience are now not only inspiring consumer gadgets company, not it’s influence is beyond its own industry. I know this is an overused story, but he Apple influence is still here, and perhaps it will be here for a long time even when the company stop creating great stuff one day. Microsoft ex-CEO Ballmer saw that coming in 2012 in a letter to shareholders. "It's important to recognize a fundamental shift under way in our business, we see ourselves as a devices and services company." Microsoft had the strategy right but couldn’t execute it fully with the exception of X-Box. Microsoft’s future revenue will still be coming in from software and it isn't going to change anytime soon. The transformation from software to hardware is harder that you think.

The idea that hardware is now the new software is pretty real. There is a business model implication here. These hardwares are mostly priced between $100 to $250 and they a gateway and great way to sell software. We are seeing a revival of hardware and this time, it is hardware first and software and then date on the cloud, it will bring new technological advances in cloud-powered hardware that boosts productivity, efficiency and manifests as beautifully designed objects that fit into our hands and homes.

September 16, 2014

Everyone is looking for a breakthrough. The massive shift in generation differences in consumer behavior and rapid technological shift are casuing many companies to fail.... and it will happen fast. Companies that are stuck in their old mental model cannot breakout for many reasons. It is usually a combination of all that causes them to be irrelevant. It includes leadership’s blind sight, organization legacies and lack of foresights and the list goes on and on...

How often companies can act swiftly and not taking a wait and see attitude? All the time. It takes strong leadership to take bold decisions even though they feel fear while making these decisions. Here are a few ideas, which I often make accessible to a my select clients. How do breakthroughs happen? It is not just luck or strategic thinking. Can they be engineered? Are there preconditions? Or is it a skill that we can develop and learned? When companies are stuck whether in an old paradigm of doing business or a legacy business design, they need breakthrough.

Exploring the “Grey” area. The central core of organizations contains beliefs that were built up over the years and a value system that provides us with perspectives of the world and forms the grayscale of our personality. Seeing the world in black and white is terribly dangerous. Sticking to your core does not mean you should not understand the ‘grey’ around it. Making explicit attempt to push the “grey” area of what consider your core.

Anticipate and Leverage Moments Most breakthroughs don’t happen through excessive rationalization or planning. In fact, almost all breakthroughs are sparked by “moments.” This is one of the things I teach people about looking for breakthroughs. The process of finding any breakthrough – whether in business, technology or design – often involve immersing oneself in large amounts of data and extensive debate and synthesizing information. Most people fail to see the moments when they happen or fail to capture them. I have a long list of things you can do to maximize it happening.

Expand Awareness through Emotions. There is so much myth about emotions; we often associate them with the extreme cases when we overreact or how they prevent us from making the right decision or making us too aggressive with the things that we want. These are all true, but emotions also have a positive side – if you know how to use them. Emotions are our inner sensors at work, sending us weak signals from the outside. It triggers our desire to heighten our senses as our whole and even affect our brains in memory, basically expanding the operating parameters of our cognition. It helps us take in more information, store them in a deeper place inside our mind, hold multiple ideas in mind at once, and layers a feeling over objects and situations.

Imagineering as Daily Ritual. Unless you’re in the business of creative production such as film, animation or video gaming, most likely you don’t have a need to use imagination in your daily work. But imagination is not a tool we can call up on demand; we need to practice it every day in order to maintain our ability to imagine. Imagination is a major part of how we frame and solve problems. The practice of applied imagination (or imagineering) can increase the number of creative options available for a specific problem that we’re trying to solve. Imagination is part of our subconscious way to assist with idea generation. You’re not so much thinking of specific ideas of how to solve a problem, but rapidly and randomly envisioning what might be, what could be, and what couldn’t be. It's very easy to compare creativity and knowledge in an abstract, metaphorical sense – but we know that our imagination is developed from the knowledge we gain in the experiences of our daily lives and little encounters.

Practice Design of Meanings. Try to design a breakthrough project or pilot activity for yourself as experiment. Some breakthroughs are sparked by eureka moments based on insights – but far more are based on design. Design-driven innovation is spurred by thinking about possible breakthrough features, meanings and product languages that could emerge in the future. This cannot be done by talking to consumers or looking at current user behaviors. Consumers can’t really imagine radical futures, as they are anchored and invested in the current one; thus they are not helpful in anticipating possible radical changes in new product meanings. Big breakthroughs don’t necessarily come from disruptive applications or advanced functions; sometimes it’s new meanings that shift the universe. Think about how every one of the everyday objects that we see around our home can be transformed: instead of being simply functional, consider how to turn them into symbolic objects of irony, desire and affection.

September 01, 2014

As everything is moving faster and less predictable as it seems while organizations struggling to understand what it means and what options to take and how to land on the right decisions at the right time.The results often are inactions or delayed repsonses that cost companies.

Both senior and middle managers’ job include understanding, interpreting and communicating options for executive decisions, both as change agents and advocates. The toolkit that they have is very limited. Sensemaking is a vital skill and a new managerial discipline that is lacking across many organizations and functional units. How do we define sensemaking? It is how we try to make sense of the world and associated challenges so we can see and act in it. It also carries the concept of sufficiency, which is whether we know enough about the interrelationships and dynamics of the scenarios (events, places, people etc.) to make a contextually appropriate decision.

The two main academic thinkers in the field are Karl Weick and Brenda Dervin both of their work are very user readable. Weick I think tends to apply a more normative and organizational approach while Dervin looks at individuals and communication. Karl Weick emphases the importance of “mapping.” It is not enough to collect a lot of data, as we do these days and it is often overwhelming for managers, what is really important is that we need to take that complexity and map it in a simple way that can be communicated and shared so that a team or an organization can have a shared view of what the environment is like right now. Make complexity communicable but yet not making it overly simple.

I have seen people drawing simple circles or big maps with arrows and boxes but fail to communicate anything except the situation is complex and end up comfusing themselves as well as others. So beware of those fancy arrows and boxes that are useless. Good mapping provide managers with the benefit of seeing what’s going on and comparing that with their mental models. Good decisions making depends heavily on good sensemaking that includes important cues and signals so managers and senior executives can have a bigger capacity to make sense of uncertainty and emerging behavior. It has always been a core part of our strategic design thinking toolkit and there is no shortage of demand from clients to learn that skills.

June 01, 2014

How do breakthroughs happen? Can they be engineered? Are they pure luck? Or are they the result of skills that we can develop and improve upon over time? Along with the fear of the unknown and the pressure to make it happen, breakthroughs come with an incredible sense of possibility and satisfaction.

The experience of uncovering a breakthrough is exhilarating and hard to explain. It’s a sense of not knowing exactly where I am going, but knowing that I am going somewhere. Here’s my secrets to achieving breakthroughs:

Preserve the “Me”. The world we're living in today seems to be a completely different one from 10 or 20 years ago and a crazie one. Sometimes I wonder if the world is really changing that fast at a break-neck pace. There is a notion that if you can’t change the world you should change the way you look at it, but I don’t like the idea of changing myself according to the world and adapting to it. The central core of what’s “me” contains beliefs that we’ve built up over the years and a value system that provides us with perspectives on the world and forms the grey scale of my personality. Black and white only exists in film, photography and my Prada suit; seeing the world in black and white is terribly dangerous. The person who views things only in black and white will always be miserable or unsuccessful in whatever they pursue. That’s not and never was the rule of the universe. Sticking to your core does not necessarily mean you are not open to the world. It means you open the world to “you” and everything you experience adds one more layer of sophistication to the “you” and heightens your awareness and sense of being. Any personal breakthrough need not give away or suppress the “you.” What you experience every day should make a beter “you.” Breakthroughs require the “you” in “you.”

Anticipate and Leverage Moments. Most breakthroughs don’t happen through excessive rationalization or planning. In fact, almost all breakthroughs are sparked by “moments.” This is one of the things I teach people about looking for breakthroughs. The process of finding any breakthrough – whether in business, technology or design – often involves immersing oneself in large amounts of data and extensive debate and the synthesis of complex information. Most people fail to see the moments when they happen or fail to capture them. I started working to facilitate these moments a long time ago, making them happen more easily and more often. How I ask questions and how I push people to their limits (as I do with my staff) is one way that I try to help them to experience moments. I feel bad for sometimes being seen as critical and demanding, but that’s how I get myself and others to create those moments.

Expand Awareness through Emotions. There are so many myths about emotions. We often associate them with extreme cases where we overreact, when they prevent us from making the right decision or make us irrational pursuing things that we want. This is all true, but emotions also have a positive side if you know recognize and respond to them. Emotions are our inner sensors at work, sending us weak signals from the outside. They trigger how we expand the operating parameters of our cognition, help us take in more detailed information, hold multiple ideas in our minds at once, and ascribe meaning to the things, people and events in our lives.

Imagineering as Daily Ritual. Unless you’re in the business of producing film, animation, video games or other highly creative outputs you most likely don’t have a need to use imagination in your daily work. But imagination is not a tool we can call up on demand; we need to practice using it every day in order to maintain our ability to imagine. Imagination is a major part of how we frame and solve problems. Much like yoga, tai chi or voice training, imagining requires that we put in practice time in order to expand our ability. Applied imagination (or imagineering) can increase the number of creative options available for specific problems that we’re trying to solve and help with tasks like ideation. Rather than focusing on developing ideas or how to solve a problem, Imagineering is about rapidly and randomly envisioning what might be, what could be, and what couldn’t be. It's very easy to compare creativity and knowledge in an abstract, metaphorical sense – but we know that our imagination is developed from the knowledge we gain in the experiences of our daily lives and works by employing that information subconsciously until it’s ready to break through into awareness.

Practice Design of Meanings. Try to design a breakthrough project or pilot activity for yourself as an experiment. Some breakthroughs are sparked by eureka moments based on insights – but far more are based on design. Design-driven innovation is spurred by thinking about possible breakthrough features, meanings and product languages that could emerge in the future. This cannot be done by talking to consumers or looking at current user behaviors. Consumers can’t really imagine radical futures, as they are anchored and invested in the current one; thus they are not helpful in anticipating possible radical changes in new product meanings. Big breakthroughs don’t necessarily come from disruptive applications or advanced functions; sometimes it’s new meanings that shift the universe. Think about how every one of the everyday objects that we see around our home can be transformed: instead of being simply functional, consider how to turn them into symbolic objects of irony, desire and affection.

March 30, 2014

We are trying to fix the world, the companies and many of our wicked problems that were mostly 100% man-made. Economists, policy makers, academics are spending too much studying our dysfunctional organizations and societies and trying to figure out why the high level of poverty, joblessness and hopelessness and how we are struggling with competing against low-cost producers and how low-cost producers are struggling with ultra-low-cost producers. The reasons are quite obvious and the problem is at a systemic and structural level. Capitalism has been suffering from major setbacks for the last 10 years and the future in its curent form is uncertain.

Switzerland has a very high living standard. Even compared to the London, Seoul, Tokyo, Hong Kong and San Francisco. It has few natural resources, yet it has managed to have one of the highest per capita incomes in the world. It has a decent private health care system and a sound currency and a very efficient public transport system. It has one of the lowest marginal tax rate on average income workers in the world at 20%. And no capital gain tax. Average folks in Geneva, Basel or Zurich would need to work for 7-8 hours to make enough to buy an iPad mini, pretty much the same as in London and New York. Geneva and Zurich cost around 45-50% more for food which I still don’t understand why and the food is not great, perhaps I am paying a prenium for super-organic-fair-trade-politically-neutral food. This very small country can maintain leadership in multiple industries from pharma to chocolates, watches and banking and insurance is a miracle. How do they do it?

They did it without the benefit of a large domestic market. And they did it without extensive integration in supply chain which is a key competitive advantage in electronics industry as an example. Switzerland is no question the most innovative country in Europe, ahead of second-placed Sweden followed by UK, according to an annual study by the European Union. Switzerland is no perfect model, but it has a lot for others to learn. Singapore is trying hard to do that. And Canada and Australia should do the same. The Swiss are super practical people and that is being reflected in how companies are being managed.

Switzerland is both united and divided. That's the beauty of it. This is where Design Thinking is in full action. It perfectly fits my definition of Design Thinking which defines Design Thinking as the search for a magical balance between business and art, intuition and logic, concept and execution and control and empowerment. Switzerland is a country that should not do well as it defies most of the norms for strategy. No common language, lack of scale, high labor costs, overly divisified in different industries, lack of deep political beliefs. It is a country made from linguistic, political, historic and religious divisions and yet maintaing that balance. And it is not political, comparing these crazy politics happening around the world that literally stopping our world from moving forward.

Switzerland's strict neutrality is an important driver and many countries should consider adapting the same. We need to de-politicize the world. It is creating more problems that it can solve. "They swore an oath to remain different from one another", wrote Denis de Rougemont, Neuchâtel-born philosopher. "The reason for their solidarity was not to attain collective power but rather to maintain the autonomy of each individual."

Switzerland's wealth is driven by the multinational companies in highly innovative and competitive sector. I am not sure exactly how that happened and curious to do some investigation and study. Studies and studies will tell you this is the result of a well-developed higher education and public-private co-publications. I suspect there is more that that. Honestly if you ask them, most cannot tell you why they did well.

Here are a few Swiss innovations that you may not have known other than the first form of cheese:

Electric telegraph 1774

Cut pattern for clothes 1844

Chococlate bar 1849

Army pocket knive 1891

Meat beef cube 1908

Toblerone 1908

Potato chips 1950

Electronic wristwatch 1959

Electric toothbrush 1960

Helvetica 1957

Despite all, Switzerland is still behind in terms of commercializing its innovation and IP. Perhaps a little more design thinking will help them to stay in the top.

January 04, 2014

2013 was a disappointing year for consumer technologies. The 3D television push was as I've expected a disaster and who on earth would walk around at home with 3D glasses and the lack of 3D programming etc. created all barriers necessariy for mass adoption. And for smartphones as there were lack of any real innovation from the industries.

Perhaps the dominant design pioneered by Apple is really reaching the end of its S-curve, even the iPhone 5S has only incremental changes (ok a better processor) in design and software. I am ready to bet that the fingerprint sensor will be dropped within 3 years. What is so great about a fingerprint sensor? It is so old school whether it is finger print or facial recognition. The iOS still remains the most polished, stable, and well-designed operating system for smartphone. May be people aren’t even expecting more from smartphones at all. The camera needs some improvement for sure. And the screen size is an interesting discussion.

China is watching and Lenovo is gearing up for the next game or the world game. Lenovo, currently the second largest smartphone vendor in China and aspire to become market leader. Apple is at threat and at this point they may not be afraid of any. They are at its peak. And they are busy with the new headquarters, refreshing the retail experience, designing the iWatch and finding the next color for iPhone whether it is blue silver or rose gold.

Android now accounts for more than 80 percent of smartphone sales, while iOS is down in the mid-teens. Apple need to change the game or someone will. Smartwatches is still a toy category. But that could change when Apple fixes many of the challenges. They will and can. And it will cost $300-$350 and people will buy. It is easy one from a strategy perspectives but also a lazy one. Have they run out of industries to reinvent? At the Consumer Electronics Show this week, I think Samsung will have the biggest, most new products and most populated booth. Apple’s main threat is Samsung, Microsoft, Google and Lenovo are all attacking Apple from behind. The whole wearables will be driving the new game and 2014 will be a more excited here. I do believe that we will see wearables showing signs of becoming mainstream this year, and we've been monitoring and prototyping all kind of ideas for 20 months. 2014 I expect te see different dominant designs emerging, there will be no winners anouncement this year, not until 2016 earliest. But I already know who definitely won't work.

November 18, 2013

The party at Idea Couture London office last week was a fantastic event. Get to meet many young talented people there and looking forward to work with them on projects. My work takes me around the world and it is hard to get to know everyone in different offices. I enjoy talking to creative people from creative engineers to designers. And I have a very different idea of what "creative" people means. Idea Couture is a creative powerhose and it is creativity in the deepest and most systematic sense, looking at challenges from new perspectives but achor in a highly logical manner. That's our creative algorithm and it is rooted in every IC office.

Design educators take note. Design schools have built up an expectation that they can equip students to tackle complex problems through the power of creativity alone. They can’t. They don’t. And they continue to fool themselves with four big myths about creativity.

The first myth is that creativity and design are inseparable. Here, we have led ourselves down a garden path of consensus where many of us believe that because designers are designers they are creative. But design is not creativity manifested, and creativity is not the exclusive to the design mind. One can be creative without having any design skills or sensibility, and there are many skilled designers who utterly lack in creativity. Design doesn't = creatiivty. It needs creativity.

The second myth is that analytical people are generally not creative people. Here, in subscribing to the popular oversimplification of human complexity that there are right-brain thinkers and left-brain thinkers, we assume that those of us who lean towards analysis, process, logic and science are – admit it – a little uninspired. As anyone who understands what goes into big and small leaps of science knows, this is rubbish. The analytic and the creative can, and often do, live side by side in the same brain.

The third myth is that, when it comes to design, creativity must be unbound from the laws, structures and processes of the day-to-day world. Bound up in the long-standing mythology of the artist as a visionary or hero who must be free to do what he/she – and he/she alone – does best, this can sometimes be little more than an excuse for the fact that the artist or visionary lacks the ability to apply his creativity beyond his own imagination. Nowhere is this more prevalent than at the intersection of business and design where many creative people prove themselves incapable or unwilling to grasp (and design for) the realities of what a company does and how it operates.

The fourth and final myth is that which surrounds the recent and very popular theme of ‘design for social change’. While the output of many such projects is little more than a poster and a campaign, not an actual solution, most of us would agree that such work starts with the best of intentions. Here, as in the third myth, the challenge is that designers are generally not educationally or experientially equipped to identify the social or cultural genesis of a problem and are typically blind-sided by the economics of an issue. The result is that many develop ideas (not really solutions) that are irrelevant, unsustainable and, in some cases, lead to further problems. They were one minute inspiration and not sustainable change.

If I was to start a design school (not sure I would) from scratch tomorrow, the program would be based on Movement, Intuition, Structure and Complexity. These would be the “subjects” that would become the permanent vocabulary of every graduating student for one simple reason: we need to train a new breed of professionals that can live up to the promise of how design can change the world. Only by balancing the ‘general’ with the ‘specific’, the ‘whole’ with the ‘part’, the ‘abstract’ with the ‘concrete’, and the ‘indefinite’ with the ‘definite’ can we prepare young people for the increasingly competitive job market, the stakes of what it means to be a citizen of design in the global community, and the what it means to be a human being who enjoys deeper forms of beauty, meaning and purpose while understanding economics.

October 26, 2013

Sometimes I wonder how much progress we’ve actually made over the last 50 years. In Saudi Arabia, women are still not allowed to drive along with many other things. Today, a group of Saudi women have taken to the streets in their cars on a day of collective protest against the ban on female drivers. I am sure they will be getting threats of all kinds and if we’re talking about human rights let's start with this. There were about 17,000 people who signed a petition calling for women to be allowed to drive.

Still, many companies do not understand the importance and benefit of normalizing the workplace for LGBT beyond just offering workplace protection. Protection is one thing, but realizing the power of true diversity is another and creating a diverse, inclusive workforce where we can bring people from all backgrounds together produces a dynamic workplace and actually helps with innovation. Despite how open we think the world is, we’re still living in a very conservative world while technologies are racing us forward and bringing more open-mindedness and thereby widening the gap.
Innovation is the core of organization competitiveness and gone are the days when corporations had their workforce that looked the same, trained the same, dressed the same, worked the same, spoke the same language and was predominantly of the same gender (usually male) and lifestyle. No wonder it is hard for them to innovate.

Any homogeneous corporations will not survive the shock that organizations are experiencing. The most basic not-so-secret formula for building an innovation culture is pretty simple - embrace diversity and start to attract, retain and promote a diverse workforce that looks differently, works differently, dress differently, speaks differently and is inclusive of the full spectrum of human sexual orientation and gender identities. Do this before you start hiring consultants and rethinking your innovation process, there is no process that works without true diversity.

In fact, there is a very close correlation between diversity and innovation. Senior executives and employees alike are recognizing that a diverse set of experiences, perspectives, and backgrounds is crucial to innovation and the development of new ideas in and outside the workplace. All great companies of the future embrace true diversity, not just a policy to satisfy the public, but truly and deeply believe that diversity is the key for the future and the survival of organizations. When Tim Cook stepped into the role of Apple CEO in Aug 2011, the appointment earned him the unofficial title of “the most powerful gay executive in the world.” That move alone convinced me Apple gets it.

“It is never too late to give up your prejudices” ― Henry David Thoreau. I don't thing we are working hard enough. Perhaps someone should design an app to deal with prejudices.

September 15, 2013

For all those cash-rich companies
such as Apple, Google and Facebook, there is a race to hire celebrity architects to design their headquarters. Google headquarters
consists of nine angled buildings connected by bridges. Reportedly, the idea
was based on data collected from Google employees’ behavior which then
translated into some kind of architectural algorithm that should produce
“casual collisions” to make innovation happen more often. I am not buying this,
well they are. I guess when you have too much money to play with. When 3D virtual conferencing technology comes to market, these
companies will be the early adopters. Expect cool walk-in facilities outfitted
with wall-sized screens that project 360-degree views of video conference
participants from different offices or countries. The last time business
attempted to reinvent the workplace was during the dot.com days when many companies
switched from cubicles to open offices in order to improve collaboration and
encourage impromptu problem solving. Today, millennials demand more personal
workspace flexibility (actually they demand many things too) – the ability to adapt a workstation or stand at their
desks. Standing work is happening everywhere as much as working on a couch. In
addition to personal storage and personal expression, companies need to
accommodate for this preference. At Idea Couture, standing desk is becoming so popular (not sure I remember who in our office started that) and now I see people standing, jumping while typing (wearing their Fitbits) and talking on the phone.

I really can’t wait for the day
when we start banning standard cubicles and those headache-inducing white
fluorescent lights. Those light scan literally gives me migraine. I wish those standard cubicles would join the ranks of the
fax machine and the time-punch clock. It just might happen, thanks to Google,
Apple and Pixar and others who have started to embrace the idea of cool
workspaces designed to stimulate creativity and inspire innovation. I don’t
mean those that put up colorful wallpaper and a few beanbags; that's no better
than a cubicle. Workspaces can be stressful environments and it is important to
think about how we can design to reduce stress, not just create colorful
eye-candy.

Most workspace stress
can come from any physical conditions that you perceive as irritating,
frustrating, uncomfortable or unpleasant. Common sources of workspace stress
include poor lighting, noisy backgrounds, lack of fresh air and poor climate
conditions. But the biggest potential stress is other people. Difficult people
can cause so much stress, particularly with the demand for team collaboration.
Can a cool office space solve this problem? Perhaps to a certain small degree.

Physical workspaces have a profound impact on increasing not just productivity
but also team creativity and collaboration. That’s part of the reason why
Google and Facebook designed their offices with people sitting side-by-side and
no partitions between them. An open environment radiates a sense of community where
creative spaces calm people down and remind them there is a creative solution
to any problem. Cubicles remind you that the office is a machine and you must
processes and procedures.If your company isn't thinking about how workspace design
can improve collaboration, chances are you are stuck in the 80s. This is a good forum to debate on this subject on how creativity is endangered in New York Time.

These days
everyone wants to collaborate with each other (those who can't are pretty much considered unemployable); the average employee actively
participates in at least five different ad hoc teams simultaneously, and we can
expect that number to rise. Creative workplace design that supports
collaboration will be part of the new productivity index. And you don't necessarily have to spend a lot of money, perhaps let's start with a policy for pets ... creativity starts here.

August 19, 2013

“Design Thinking” has gone beyond fashionable in the design industry, but now quickly getting into management circles and even boardrooms. B-schools are tapping into this new trend and but many are yet to understand what it means and its applications. The idea of management that we teach in B-schools was originally designed for a set of very different kind of needs - managing repetitive tasks, improving economic efficiency and labor productivity and maximizing scale. Today the needs expand to managing complexity and extreme uncertainty that is part of our everyday environment and this is where “Design Thinking” can change management forever.

I am having lots of conversation with B-schools Deans and professors to explore how we can bring this into MBA core.
My new book “Design Thinking for Strategic Innovation” is now officially available this week and it has been 15 months in the making and based on extensive research and field practices. Many traditional proven and popular management tools and technique are being questioned for their validity and my book explains why.

My book shows how “Design Thinking” can be used to deal with some of the most common challenges in business today from competing for the future to managing change. This is not an update on our management operating system; this is about rearchitecture of our business designs. Today every business needs a new operating system. And even the world needs a new operating system.
“Design Thinking” brings strategic agility and empathy at its core. That demands a totally different level of thinking.

All concepts in my book can be effectively applied in the context of managing radical innovation as well as business model redesign. For over eight years, I have been advancing these ideas into the practice of strategic management; this book is a great opportunity to share them. Let's get beyond the overly simplified views of "Design Thinking" and make that part of any professional practices. These ideas transformed companies and individuals and I hope it can do the same for you. Please share your thoughts.

August 05, 2013

Wearable is hot. It is supper hot. The billion-dollar
question remains, “How do we create the iPhone of wearables?” and “How do we create
sub-ecosystems around these wearables?” and "What new business model opportunities will emerge?" The buzz is here but the money is not
here yet. Everyone is betting on it and no one can afford to miss the train. Most wearable out there are just toys for the geeks. I can't find a reason anyone wants to buy this Sony Watch. Wll now everyone can see my Facebook messages. What is dumb idea! OK I can use it to tell time and the weather. Apple’s
iWatch or whatever it will be called and Google Glass are getting so much
attention and everything is figuring out what are the high value potential applications.
Google has openly promoted its potential as an always-on, always with you
computing device but it has yet to find a killer application beyond the obvious. They
are hoping someone out there can figure that out for them.

And China is watching and Baidu is rumored to be working on a "Baidu Eye," an internal code name for a wearable device that features speech recognition for Mandarin, as well as image search technology, which pulls up relevant information based on a photo. So if you see a product, it will search for product info and price and availability. That take 'showrooming' to a new level.

The path to mass adoption for wearables will not be a
straight-forward one and there are technology, user behavior and production
economics barriers to cross.Apple, Google, Samsung, Sony and LG are all committed to play this game.
Apple recently acquired a small company Passif Semiconductor founded by two
Ph.D. students from the University of Berkeley, worked on developing chips with
radios that consume very little power and work with the Bluetooth Smart (a.k.a
4.0 and low energy) standard. The acquisition will provide Apple with addition
al expertise and expect an acquisition boom as players gearing up for the big
game.

With all these buzz and emerging innovative conceptual
designs competing for the dominant design there are still many questions to be
asked about what the future holds and how consumers will adopt different
product paradigm. Even the smartphone itself is still shaping our behavior today
and we are still actively reprogramming ourselves. Smartphone is becoming the
operation system of our professional and personal life and our relationships
with the outside world and emerging systems around it. And when it comes to Operating System, the main battle will be an OS that will interoperate across all devices. This is the big play.

Expect to see all sorts of novelty
design coming into the market. There are lots of novelties out there including a wearable electronic synthesizers
to be embedded into T-shirts turning them into human musical instruments. There
are also people using neurophysiological signals and brain waves to play video
games. These will never be mainstream wearables.

The success of any dominant design for wearables will
be based on successfully tackling of the 3Bs: Balance, Benefit and Beauty.

Balance: The design
of the wearables needs to fulfil the requirements of fitting comfortly with our bodies and many human factors considerations. The design needs
to include studying the anthropometric measures of the human body and of the
equilibriums between the various zones of the body. The connection between the physical form of wearables and their active relationship with the human form will be
key to the concept success. These nerdy high-tech design will not cut it. Other
considerations include comfort, the design to adapt to different body type (male
vs female, tall vs short) and study of non-obtrusive shapes and the optimal conditions to let
the sensors work well.

Benefit: The designers must first determine the real problem
the wearable concept is trying to solve and needing to solve and able to solve. The benefit
doesn’t have to be a known benefit today and could be some needs user don’t
even know they exist until they see it. The design can open up new
possibilities for people andmust
fit within the context of the user’s lifestyle and experience and the
infrastructure around us.

Beauty:Consumer needs to love the design. It
needs to have the visual appeal that the user won’t look like something you see
in a Sci-Fi movie. It needs to be expressive and it doesn’t only limit to the
form factor, but the overall interactive
experience. The connectivity piece is key it needs to allow for seamless
wireless connection. The interactions or interface design is the most tricky
one. Are we thinking touch screens, gestures or eye tracking?

More next week. I won't tell you what works. I can tell you what definitely won't work. And like everyone else, I could be also be wrong.

June 25, 2013

Companies make many mistakes in their innovation journeys and often they go down the same path again and again and wonder why that is the case. The four main reasons among many are:

1/ They think it is all about creativity and coming up with more ideas.

Coming up with ideas is easy. Coming with good ideas is not difficult. Coming up with more ideas is not helpful. It is the quality of ideas and once ideas are being exhausted, it is time to perform the more difficult job of sensemaking and mapping. This is where most people fail and have no ideas of what and how to do next. They lack a framework of synthesizing these concepts into bigger themes and look at them in a differently way to see how each of ideas-system means to the customers, business and industry.

2/ They think innovation should be separated from the brand.
Often people start thinking of new ideas without thinking without understanding the scope and scale requirements and that should be governed by the brand.

These ideas need to link to the current brand or masterbrand in whatever ways and has the potential to scale within a reasonable period of time. No established companies, unless for a very good reason, should start a new brand because of economic reasons and also the brand can be the powerful source to inspire innovation, in addition to the users or customers. Otherwise people can waste a lot of time and realize even they have a good idea, the marketing investment will cost too much making the project not worth pursuing. On the opposite, they also should not confused brand extension or other incremental innovation as strategic innovation.

3/ They think their current capabilities (including that of their agencies) are adequate and can do the job. The learning curve for them is too steep.

In many cases, companies have existing working relationships with their advertising agencies and marketing research firms and naturally would want to work with them on innovation projects. This is a bad decision as for the advertising agencies, they are too deeply embedded with the existing idea of what the brand is and should do rather than a fresh way of looking at it. And most marketing communications people and not equipped to manage the innovation process. Some innovation firm is basically ex-advertising agencies people repackaged themselves as innovation consultants (there are some occastions people successfully migrate). Most marketing research firms are not equipped with the right tools to do research that support innovation, and end up applying the usual quantitative and qualitative research methodologies which were designed for market testing and tracking.

To unlock the full power of applied creativity to drive innovation and economic value, let’s not approach innovation with overly simplified approach to getting the magic and bringing in the money. There is no magic in the innovation process, no one should hide behind this magic black box and the client expect them to show up one day with some magical ideas and then write them a check. Innovation is about applying design thinking and having all the right type of people and capabilities in place.

4/ They are confused between strategic visions, brand and innovation and what comes first?

Executives spend a lot of time on strategic vision – answering questions such as who we are, what we do and what do we want to be when we grow up etc. Then they trying to figure what the brand really stands for. At the same time they also spend time on creating new products and service ideas? What usually happens next is now they struggle bringing the two together to use?

When people hear about vision, they think of it as something that guides the company into the future, and to succeed in the future requires innovation. And innovation is about building a powerful brand and create new market space for the future. While the value of having some kind of strategic vision is obvious, it should never be mistaken as strategy. Strategy is not only about vision, it is about strategic innovation. And brand should guide innovation. It is so easy to get confused.

Moving forward companies need to do two things differently.

1/ Reorient their brand people with the idea that brand needs to get beyond communications. My new book 60-Minute Brand Strategist shows readers step-by-step guide to build a brand from the core and its meanings to customer experience design. Brand Managers should not be stuck in the old world with old-school approach and brand-building model developed in the 80s and take on the roles as Brand Innovators. Every brand manager’s jobs should have two roles: managing brand business performance and managing brand innovation.

2/ Rethink what kind of people and skills that is needed to implement innovation. Implementation innovation is 10X harder is coming up with the ideas and it requires more than a product development person. They need to understand the different roles that they have already – and will need – on the team and each role’s importance in the ideation and activation stages. Idea Couture research on innovation practices shows that many business leaders still believe that innovation is a rare gift that exists mainly in creative people who are in leadership roles or gifted creatively. For example, just think of how often you hear people saying, “That’s why I get paid the big bucks because I am the big idea guy.” Such thinking is not healthy as it usually means that organizations are overlooking other, much better sources of potential innovation. An idea, even a big idea, is not the same as an innovation. Only when an idea is turned in to a product, a service or a business that creates new value can it be considered an innovation. Whether the innovative idea is radical, substitutive, incremental, or complementary, it still needs to fit into the stages of a value chain within an industry.

On another note, my book 60-min Brand Strategist is offically launched this month. It is available in Amazon, Barnes and Noble and other book stores. These are some pages taken from the book. It only takes you 60 minutes to read through it. I know you're busy. Share with me your thoughts.